Bitcoingress
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Bitcoingress
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Bitcoingress
No Result
View All Result

How New Jersey’s Potential NFT Regulation Can Set Poor Precedent

Press Release by Press Release
January 20, 2023
in Regulation
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter


For the first time, we’re seeing an individual U.S. state (in this case, New Jersey) pursue NFT-specific regulation in what is bound to be a messy situation.

A state bill, titled the ‘Digital Asset and Blockchain Technology Act,’ has already passed assembly and is on its way to the Senate – where speculators have largely expressed belief that it will pass.

Let’s dive into all you need to know regarding this bill and it’s potential implications on NFTs and crypto.

New Jersey: No Stranger To Crypto Enforcement

New Jersey is not foreign to the concept of ‘cracking down on crypto.’ There’s a variety of examples of this, but one recent memory surrounds the now defunct CeFi platform, Celsius. Celsius was based in New Jersey, and the state was one of the first to put the clamps on Celsius’ operations. Several other states, such as Alabama and Texas, followed suit, and less than a year later, Celsius operations closed and the company was chalked up as another 2022 bear market domino to fall.

Now, state regulators are back again, this time looking to establish a “Nationwide Multistate Licensing System” for NFT issuers. At it’s face, should this bill pass, it looks to be little more than an unnecessary, unenforceable piece of regulation that will serve little good to independent creators and collectors in the state.

Crypto's coming out strong to start 2023; is it a massive bull trap, or a sign of changing times? | Source: CRYPTOCAP:TOTAL on TradingView.com

What It Means For Crypto Users

Crypto users that are based in the state of New Jersey, according to the language in the proposed bill, will not be able to “engage in a digital asset business activity” as a business or individual in the state without registering for a license. The licensure oversees anything from custodial services to “issuing a digital asset” – i.e., something as simple as minting and selling an NFT.

Crypto and NFTs are littered with nuance, making regulation a near necessity but simultaneously, a massively difficult task. While custodial services that are managing processes around tokens on behalf of customers is undoubtedly an area that deserves regulation, that regulation should not encompass works from an independent visual designer who wants to mint an NFT collection. It’s unfortunate that New Jersey legislators are not working to establish terms that differentiate these two worlds.

Furthermore, there is plenty to be said for enforcing this sort of regulation. While enforceability against major firms, like the aforementioned Celsius, is much more manageable, the feasibility of enforcing this bill is unclear – and the legislation leaves us with more questions than answers.

Crypto communities are notorious fans of anonymity and living ‘internet-first,’ where geographical bounds are far from essentially and less identity-defining than ever before. It leaves us with the belief that for the general public, it will be difficult – if not impossible – for regulators to manage.

At best, perhaps it can set guardrails for corporate entities engaging in the space.



Source link

Tags: JerseysNFTPoorPotentialPrecedentregulationSet

POPULAR NEWS

OnlyFans Creates Massive Opportunity For A New Platform To Take Over The Adult Entertainment Industry

August 23, 2021

EAN Exchange’s DeFi Token Offering (DEAN) Surges Past $0.70 And Why This Is Only The Beginning

December 4, 2020

DeFi Investment Trend: The Yield Farmers

January 4, 2021

Knox Wire Addresses Cross-Border Payment Issues with New RTGS System

March 26, 2022

Bitcoin futures ETF is available for trading on NYSE Arca, see how ZT shines in the ETF market

October 25, 2021
Binance Charity Fund (BCF) Officially Recognizes the Raven X Project

Binance Charity Fund (BCF) Officially Recognizes the Raven X Project

April 25, 2021

Optima emerges as the cryptocurrency exchange software with multiple features in the industry.

May 26, 2022

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Sri Lanka Central Bank Says Bitcoin Cannot Solve Economic Crisis
  • Takashi Murakami to Release Collection of 13 NFTs Linked to Physical Hublot Watches
  • The White House Is Concerned About Crypto
  • MakerDAO Constitution Would Fund Sustainability Efforts With 20K MKR Tokens From Reserves, Emissions
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 bitcoingress.com

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Cryptocurrency
    • Altcoin
    • Litecoin
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 bitcoingress.com